Fed Gov. Says Funding Rules Must Go Beyond Banks

By Evan Weinberger

Law360, New York (September 20, 2013, 4:33 PM ET) -- The Federal Reserve's lead governor for financial regulation on Friday continued a call for new rules for short-term funding markets that would apply to all financial institutions, not just banks, to keep too much risk from building up in the so-called shadow banking sector.

In a speech at Yale University Law School, Fed Gov. Daniel Tarullo said global regulators need to make sure that any new rules governing wholesale funding mechanisms apply to the entire financial system and not just the largest banks. In particular, Tarullo...